David Operated a Small Delivery Business

question 48

Essay

David operated a small delivery business. He approached the Empire Bank for money to buy a truck to be used in the business. The bank was willing to loan David the money and took a chattel mortgage over the truck. As further security in the event that David defaulted on the mortgage, the bank required his wife to sign a promissory note for the full amount of the mortgage. After experiencing some financial difficulty, David defaulted on the mortgage and the Empire Bank took possession of the truck and sold it pursuant to the chattel mortgage. The passage of sale was insufficient to cover the full amount of the loan and the bank sued David's wife for the remainder owing on the basis of the promissory note. Discuss the rights and duties of the bank and David's wife, and render a decision.

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Definitions:

Preferred Policy

A favored course of action or set of guidelines adopted by an organization or government.

Empowerment

Refers to the enhancement of an individual's or group's ability to make choices and transform those choices into desired actions and outcomes.

Socioeconomic

Relating to or concerned with the interaction of social and economic factors.

Interpersonal

Pertaining to the interactions or relationships between individuals, often concerning communication or social connections.